Effective action against corruption Sub-theme 4 Law Enforcement

Effective action against corruption Sub-theme 4: Law Enforcement: TOPIC: Case Study –Specialised Units and Courts Global Forum 5 2 -5 April 2007 Johannesburg, Republic of South Africa 1

Pol. Maj. Gen. Peeraphan Prempooti Advisor to the Prime Minister 2

Corruption has become an issue of major political and economic significance in recent years and the necessity to take measures against it has become evident. The OECD has assumed a leading role in preventing international bribery and corruption. CORRUPTION - An act done with an intent to give some advantage inconsistent with official duty and the rights of other. It includes bribery, but is more comprehensive; because an act may be corruptly done, though the advantage to be derived from it be not offered by another. Sometimes corruption is understood as something against law; such as, a contract by which the borrower agreed to pay the lender usurious interest. It is said, in such case, that it was corruptly agreed, etc. 3

Founding: AD. 1238) never colonized( Corruption by Country Ranking: 61 Population: 64, 631, 595 GDP per capita: $ 2, 547. 14 Capital: Bangkok (pop. 5, 882, 000+) Religions: Buddhist: 94. 7% Muslims: 4. 7% Christian: 0. 7% Others: 0. 9% 4

Corruption Means the performance or omission of a particular act in office or in the course of official duty, or the performance or omission of a particular act under the circumstance likely to cause other persons to believe that the person so performing or omitting holds such office or has such duty although the office or duty is not held or assumed by such person, or the exercise of power in office or in the course official duty with a view to acquiring undue benefits for his or her own or for other persons 5

Political Rules on Anti-corruption in Thailand 1. Political Will: Gov’t declares clear policy against all type of corruption 2. Specific Legislation/s: The Issuance of Special Legislations 3. Specific Authority: The establishment of Special Law Enforcement Agencies: National Counter Corruption Commission 4. Specific Measure/s: The Announcement of Gov’t Special Measures: “The WAR against Corruption” 5. The signing of UN Convention against Corruption on 9 Dec. 03 6

Law Enforcement Agencies in Thailand with jurisdiction on Anti-Corruption 1. Royal Thai Police Department (RTP) : - Thai Criminal Code B. E. 2499 (1956) 2. The Office of the National Counter Corruption Commission (NCCC) - Organic Act on Counter Corruption, B. E. 2542 (1999) 3. Anti-Money Laundering Office (AMLO) - Anti-Money Laundering Act B. E. 2542 (1999) 4. Department of Special Investigation (DSI) - The Special Case Investigation Act B. E. 2547 (2004) 7

Special authorities of NCCC under the virtue of Organic Act on Counter Corruption, B. E. 2542 (1999) - To inspect assets and liabilities of State official/s and politician/s; - Inquire and submit a request to impeach high ranking state official/s or politician/s from position. - Criminal Prosecution against politician/s or state official/s - Inquire & probe on state officials of his/her wealthy beyond income/ malfeasance in office or corruption practice. - To prescribe rules and procedures: To receive the report of submission of the assets and liabilities of 8 State officials and PM and Minister;

Special Powers of NCCC (continued) - To refer matters to the agency concerned to make a request to the Court to revoke a right or document of which the State official has granted to a particular person in contravention of the law or official regulations to the detriment of the Government service; - To submit a criminal indictment case to the Supreme court via Attorney General Office for criminal assets forfeiture, including the forfeiture of substituted corresponding value of assets. 9

. Narcotics • L Trafficking in Women & Children Terrorism Customs Evasion AMLA Predicate Offence Cheating & Fraud to the Public Extortion & Blackmail Malfeasance in Office Embezzlement/Cheating & Fraud in Financial Institutions 10

Exploitation of natural resources Offenses relating to the Excise Law Money Exchange Control Act 8 Additional predicate offenses Illegal gambling Stock Manipulation Labour fraud Unfair Practice in Public Procurement Arms smuggling 11

Additional 8 predicated Offences (The amendment is in progress) • • • Exploitation of Natural Resources Foreign Exchange Control Act Stock Manipulation Illegal Gambling Arms Smuggling Unfair Practice in Public Procurement • Labour Fraud • Offences Related to the Excise Law ] Draft is being submitted to Cabinet to be forwarded to Parliament 12

Special Authority of AMLO Under the virtue of AMLA 1999 Against Corruption practice - Financial Transaction Report: To receive financial reports from Financial Institutions nationwide; - Analysis STR: To access to related information of suspicious transaction reports; - Right to access telecommunication system: Request a warrant from the civil court to access & obtain information from telecommunication system by using special equipments - Extraterritoriality : Jurisdiction exists over money laundering offense committed outside Thailand. - Civil Forfeiture Measure: Shift burden of proof, Civil court shall forfeit the asset involved in an offense under a probable cause to believe, Civil forfeiture is a property in rem and the court judgment does not lean on criminal case. 13

Special Authority of DSI Under the virtue of The Special Case Investigation Act. 2004 - Criminal offenses provided in 22 Acts: 1. Law on Loan Amounting to Public Cheating and Fraud; 2. Competition Act; (Anti-Dumping) 3. Commercial Banking Act; 4. Law on the Finance Business, Securities Business and Credit Foncier Business; 5. Chain Loan Control Act; 6. Foreign Exchange Control Act; 7. Law on Government Procurement Fraud; 8. Act for the Protection of Layout-designs of Integrated Circuits 14

Special Authority of DSI (continued) Under the virtue of The Special Case Investigation Act. 2004 9. Consumer Protection Act; 10. Trademark Act; 11. Currency Act; 12. Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act; 13. Interest on Loan by the Financial Institution Act; 14. Bank of Thailand Act; 15. Public Company Act; 16. Anti-Money Laundering Act; 17. The Industrial Product Standard Act; 18. Copyright Act; 15 19. Board of Investment Commission Act;

Special Authority of DSI (continued) Under the virtue of The Special Case Investigation Act. 2004 20. Enhancement and Conversation of National Environment Quality Act; 21. Patent Act; 22. Securities and Exchange Commission Act. ********************** - Access to telecommunication System: To request a warrant from the criminal court to obtain the telecommunication information by using special equipments; - To conduct the undercover missions; control delivery, penetrate into organized crime group 16

Joint Operation of law enforcement agencies on Anti-corruption in Thailand Performance of AMLO on 8 predicate offenses (2000 – 2006) Total cases = 615 cases with total of assets 4, 056, 502, 481. 58 Baht In Court 552 cases with total of assets 3, 473, 722, 225. 88 Baht = (Exchange rate 35. 00 Baht = 1 US Dollar) 17

Malfeasance in Office : State official issued counterfeited Land Title Deeds (Sor Por Kor 4 -01) to assist businessman to encroach & trespass on public 18 land in Phuket Province

Mountainous land which is the Public land had been encroached by businessman using counterfeited Land 19 Title deeds (Sor Por Kor 4 -01)

AMLO and police seized assets involved in corruption case from a former Director General 20 resident in Bangkok in 2005

AMLO and local police seized assets in corruption case from a former City Councilor resident in 21 Naratiwat Province in Dec. 2005

Malfeasance in Office : A former Abbot of a temple embezzled donated money 8 -9 million Baht for 22 personal gain. (Wat Koo case)

AMLO and Police seized the embezzled monies from bank deposit box (Wat Koo 23 case) then returned to the right owner

24 Embezzled monies hidden in Commercial Bank Deposit Box

Cross Border Statue • Palermo Convention • Article 18 paragraph 13 requiring all State-Parties to establish an official central authority to receive formal requests for legal assistance by going through normal protocol as well as to execute or transmit the request to the competent authority for further action. • Mutual Legal Assistance in Criminal Matters 25

International Cooperation • AMLO is a member of Int’l Organizations : . 1 APG in April 2001 and. 2 EGMONT Group in Oct. 2001 with 101 countries • AMLO also is in cooperation with other int’l or regional organizations e. g. ASEM, IMF, World Bank, etc. in the matter related to ML prevention and suppression. • AMLO has signed the MOU with 28 countries and is now in the negotiation process with many countries. 26

Mutual Legal Assistance in Criminal Matters 1) 2) 3) 4) 5) Investigation, inquiry, and testimony. Compiling and providing documents or information Delivery of documentary evidence Search and seizure Transferring or accepting a person in custody for taking testimony 6) Tracing of subjects or individuals 7) Initiating criminal proceeding upon request 8) Confiscation or seizure of assets 27

Treaties of Mutual Legal Assistance in Criminal Matters • Thailand has signed the treaty of Mutual Legal Assistance in Criminal Matters with 7 countries : 1. 3. 5. 7. Canada (1994) 2. France (2000) Korea (2005) 4. PR China (2005) Norway (2000) 6. UK. (1997) USA. (1993) 28

Extradition Treaties • Thailand has signed the with 10 countries: 1. UK. (1911) 3. Indonesia (1980) 5. USA. (1991) 7. Korea (2001) 9. Bangladesh (2001) Extradition treaties 2. Belgium (1936) 4. Philippines (1984) 6. China (1999) 8. Laos PDR (2001) 10. Cambodia (2001) 29

International Cooperation in Combating Money Laundering AMLO offers Int’l Cooperation through: • Asia Pacific Group on Money Laundering (APG): 23 Jurisdiction members (joined April 2001) • Egmont Group: 101 Jurisdiction members (joined Oct. 2001) • Memorandum of Understanding concerning cooperation in the exchange of financial intelligence related to money laundering (Mo. U): 28 FIUs: Andorra Australia Belgium Brazil Bulgaria Cayman Islands Estonia Finland Georgia Indonesia Ireland Japan Korea Lebanon Malaysia Mauritius Monaco Netherlands Myanmar Nigeria Philippines Poland Portugal Romania 30 St. Kitts & Nevis St. Vincent & Grenadines Ukraine UK.

Recommendations For effective cross-border cooperation : • Countries take steps to sign the treaties of Mutual Legal Assistance in Criminal Matters • Countries are encouraged to sign the Mo. U concerning cooperation in the exchange of financial intelligence with AMLO • Set up point of contact (POC) • Formal channel • Informal channel • Hotline communication • Telephone/Mobile/Facsimile • Email, etc. 31

Contact Address: The Secretariat of the Prime Minister Government House (HQ Building 2) Dusit, Bangkok 10300, Thailand Tel: +662 -282 -6939, Fax: +662 -282 -2215 For details, please visit : www. thaigov. go. th 32